You might not think Microsoft is successful at anything (lately) but all you have to do is look around.

MS is simply not going to release a Surface tablet at the $199 price point. Period.

Surface is designed to show the world what a Windows 8 tablet "should be". It will be comparable and competitve with the iPad. That's the higher margin - better quality - market that makes more sense. If an OEM wants to make $199 RT tablets, then that is up to them to own that segment. Just saying...

Your argument makes all kinds of sense. But Ballmer and MS are really hungry to make some noise in the marketplace. When's the last time they successfully launched a product? God forbid RIM wakes up and successfully launches a BB10 device. A MS victory in the Tablet or Smartphone segment is real far from a sure thing.

It would be insane to sell RT for $199. The biggest problem, other than Microsoft losing billions a year on that idea would be that no company could ever sell an Rt tablet for much more.$199 will become the expected price.

While Microsoft can lose as much money as it wishes, because of its monopoly profits in Windows and Office, its ODM's can't. This move would be a killer, as every other ODM would not produce any tablets. They would drop their products like a hot potato.

And what would be the point? I understand that this might get the tablets into a lot of hands. But Microsoft would lose at least $200, and possibly as much as $300 on every tablet sold! They would never be able to come close to making those losses up with software and content sales.

Think of it; Microsoft sells a million tablets in the quarter, and loses $250 million. Next quarter, they sell 5 million, and lose $1.25 billion. Next quarter, they sell 10 million, and lose $2.5 billion. Where's the sense in that?

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